The authorities of Inner Mongolia have decided to limit cryptocurrency mining in their territory as part of China's plan to expel the mining industry from the country, CoinDesk reported yesterday citing a government spokesman. He said:
"The inspection is directed by the central government, rather than a standalone plan initiated by the local government. The inspection is directed by the central government, rather than a standalone plan initiated by the local government."
All data centers that can host mining equipment and unregistered mining firms will be closed. Those miners who are approved by the government will be recognized as limited liability companies and will have to pay a standard price for electricity, without any type of discount. They will not be able to negotiate the price with local electricity plants. However, these are temporary measures, since all these facilities will have to cease their operations in the future.
The inspection in the region will be carried out in two stages. Local departments, which are carrying out their own inspection between September 3 and 25, will then report the regional authorities, which will establish various special teams to analyze the information provided between October 10 and 20.
Inner Mongolia is one of the best regions for crypto mining due to its cheap electricity supply, low land prices, cold weather and a small population.
China's National Development and Reform Commission (NDRC) has recently identified crypto mining as an "undesirable industry" and proposed its ban.
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